Ministry of new and renewable energy has announced generation based incentive for Grid Connected Wind Power Project. The move will help in achieving the planned target of 10500 MW for the 11th Plan period.

THE MINISTER of state for new and renewable energy Vilas Muttemwar, announced generation based incentive (GBI) for grid connected wind power projects.. The announcement comes after a very good response from an incentive scheme for solar power generation.

Addressing a press conference, Muttemwar said that time has now come to concentrate on GBI for renewable energy sources in the country. He added that all efforts will be made to create infrastructure to electrify all villages and each household in the country. The minister referred to a change in lifestyle, which has created high demand for electricity and reaffirmed the commitment to complement this demand by renewable energy sources.

Wind electric generators of unit sizes between 225 KW to 1.65 MW have been deployed across the country. India now ranks fourth in wind power generation in the world after Germany, Spain and the US.

Replying to queries from the media, Muttemwar said the state of Rajasthan has shown extremely positive results in producing power through new renewable sources. He expressed hope that a Biofuel Policy will be declared on July 9. The minister also informed that a Biofuel Board will be constituted under the ministry. The PM will be the chairman of the Board and other ministries will be its member.

The Board will look after plantation and production of Biodiesel and allied matters. Muttemwar categorically stated that jatropha plantations will come only on wasteland. Replying to a question on popularising Akshay Urja Policies, programmes, subsidies and incentives, the state minister informed about the celebration of Rajiv Gandhi Akshay Urja Diwas on August 20 every year on the ocassion of late Prime Minister’s birthday, constitution of district advisory committee for renewables, renewable energy clubs in school and colleges, renewable energy parks, etc.

Grid interactive wind power generation plants of a minimum installed capacity of five MW will be eligible for GBI. The GBI would be available only for projects commissioned, ie, synchronised to the grid and certified by the concerned utility. It will be also provided only for projects installed at wind potential site validated by Centre for Wind Energy Technology (C-WET). The scheme will be applicable only to those independent power producers, whose capacities are commissioned for sale of power to the grid.

The GBI does not favour those, who set up capacities for captive consumption, third party sale, merchant plants, etc, and to those, who avail the benefits of depreciation under the Income Tax Act.

The investors, apart from getting the tariff as determined by the respective state regulatory commissions, would get an incentive of Rs 0.50 per unit of electricity for a period of 10 years provided they do not claim the benefit of accelerated depreciation. The incentive is expected to give a tremendous fillip to the wind sector as a whole and is likely to promote higher efficiency in wind electricity generation

The ministry of new and renewable energy will provide the GBI of Rs 0.50 per unit for a period of ten years to the eligible project promoters through Indian Renewable Energy Development Agency (IREDA). The IREDA would disburse the GBI to the generators through their designated bank account on a half-yearly basis through e-payment.

The GBI would induce improvement in the quality of wind turbines as well as proper citing and optimal layout of wind farms. The incentive is linked to the actual generation and not commissioning of the plant. It will also improve the standard of operation and maintenance of wind farms to improve the generation. Thus it would result in optimal utilisation of the wind resource.